Deck 1: Accounting and Financial Statements

Question 1

_______________ are the financial statements of a group of companies.

A)Subsidiary Accounts
B)Group Accounts
C)Holding Accounts
D)None of the above

Answer 1

Group Accounts

Question 2

___________ establishes principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities.

A)IFRS 12
B)IFRS 17
C)IFRS 10
D)IFRS 11

Answer 2

IFRS 10

Question 3

A _________ includes the income and expenses of a subsidiary in the consolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.

A)Holding entity
B)Reporting entity
C)Group Accounts
D)AS 110

Answer 3

Reporting entity

Question 4

___________ transactions are transactions between entities within a group of entities and that group is consolidated into one set of Consolidated Financial Statements.

A)Inter-group
B)Intra-group
C)Group
D)Financial

Question 5

The _____________ account appear in the Balance Sheet of the Holding company at the time of consolidation.

A)Bonus Share
B)Security Premium
C)share premium
D)Capital Reserve

Question 6

__________ is the corporate management term for the act of reorganizing the legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

A)Merger
B)Restructuring
C)External Reconstruction
D)Consolidation

Question 7

A merger is defined as the joining of two or more companies to form a single legal entity.

A)Acquisition
B)Restructuring
C)Merger
D)Internal Construction

Question 8

All business combinations must be treated as _________ for accounting purposes.

A)Acquisition
B)Restructuring
C)Merger
D)Internal Construction

Question 9

In external reconstruction, the liquidated company is called ______________________.

A)Purchasing Company
B)Vendor Company
C)Holding Company
D)Group Company

Question 10

The tax effect on the timing differences is termed as ___________________.

A)Current Tax expense
B)Income tax
C)Deferred Tax
D)Provision for tax

Question 11

The objective of ________________is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosures to apply in relation to finance and operating leases.

A)IAS 11
B)IAS 17
C)IAS 7
D)IAS 19

Question 12

In finance lease agreement, the option for the lessee to purchase the property or equipment at a specific price is known as __________________________.

A)Balloon
B)Operating Leasing
C)Running Cost
D)Administrative Expense

Question 13

________________ provides information to the management regarding human resource cost and value.

A)MIS
B)Human Resource Accounting
C)Financial Statements
D)Cost Sheet

Question 14

______________________is the assistance of finance professionals to settle disputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.

A)Forensic accounting
B)Human Resource Accounting
C)Financial Accounting
D)Cost Accounting

Question 15

____________ aims to measure and inform the general public about the social welfare activities undertaken by the enterprise and their effects on the society

A)Corporate Accounting
B)Forensic Accounting
C)Social Audit
D)Environmental Accounting

Question 16

________________ also called green accounting.

A)Corporate Social Responsibility
B)Corporate Accounting
C)Environmental accounting
D)Forensic Accounting

Question 17

______________manages business finances effectively, make the right decisions and maximize your profits.

A)Corporate Accounting
B)Inflation Accounting
C)Environmental Accounting
D)Proactive Accounting

Question 18

_____________ refers to the process of adjusting the financial statements of a company to show the real financial position of the company during the inflationary period.

A)Corporate Accounting
B)Inflation Accounting
C)Environmental Accounting
D)Proactive Accounting

Question 19

Increase in the price of various goods and services over a period of time is known as ___________________

A)Deflation
B)Price Level Changes
C)Shift
D)Inflation

Question 20

Price for changes accounting can be done by the following method__________________.

A)Current purchasing power, Current Value Accounting
B)Replacement Cost Accounting, Current Cost Accounting
C)Both a and b
D)None of the Above

Question 21

_________________Accounting deals with employees and management in an organization.

A)Inflation
B)Human Resource
C)Environment
D)Forensic

Question 22

Forensic Accounting is very much useful to _____________ industry.

A)Banking
B)Communication
C)Insurance
D)None of the above

Question 23

A branch of accounting which decodes the human nature to hide failures, conceal problems, defend wrong decisions, and cover up mistakes is known as___________________.

A)Inflation Accounting
B)Human Resource Accounting
C)Environment Accounting
D)Forensic Accounting